Effective Customer Service Recovery

We all know that good customer service is critical to the success of your business, but did you know that only 10% of unhappy customers will take the time to complain? These complainers are a gift because they like you enough to let you know when you mess up. After that it’s up to you to decide how to save the sale, and the customer. 

Saving the sale is instant gratification because you end up with money in your cash register, but if you do not save the customer, their business may be lost forever. If this is an average customer then they are likely to tell 10 other people about their unpleasant experience, but just trying to resolve the problem will result in up to 70% of those complaining customers giving you another chance. And it gets even better because up to 95% of complaining customers will return if the problem is resolved quickly. 

If you do not have an official Customer Service Recovery Policy in place – and you should have an official Customer Service Recovery Policy in place – here are some ideas to get you started: 

1. Assume that the customer is honest and is telling you the truth. If you automatically discount every customer complaint, you are setting yourself up to lose that customer. Instead, treat each complaint seriously. No matter how trivial you think the complaint might be, it’s a big deal to the customer. If it wasn’t, it would not have been brought to your attention. 
   

2. Ensure that you thoroughly understand the customer’s complaint. Ask enough questions until you are certain that you fully understand the problem. Asking open-ended questions, which require the customer to respond with more than a simple ‘yes’ or ‘no,’ will help you quickly get to the root of the problem. 
   
   Repeat back to the customer what they have told you, then ask if you understood correctly. Continue to ask questions until you do. Asking questions not only puts you in control of the conversation, but it also keeps the customer talking – that’s a good thing because if the customer is angry, talking will help them to calm down. 
   

3. The buck stops here. If you can resolve the issue immediately, do so. Encourage associates to try to resolve the problem themselves, but when they can’t, get help quickly. Either way, ensure that someone remains with the customer until their complaint is resolved. 
   
   If you must contact a vendor or another party to resolve the complaint, tell the customer exactly what you need to do and offer your plan to resolve the issue. Make sure that the customer knows you are on their side and will personally work to fix the situation. 
   

4. Offer a lagniappe. The term “lagniappe” (pronounced “lan-YAP”) comes from the 19th-century Cajun French word “la napa,” which means “the gift”. Lagniappes are small gifts or favors that merchants provide to customers as a token of appreciation for their business. 
   
   A lagniappe might be an extra donut when you order a dozen, or a gift bag filled with inexpensive items from the store, a $5 gift card, or a bounce back coupon that is worthy of another trip to your store. 
   

5. Follow-up. When a complaint is significant, it’s always a good idea to call the customer to ensure that the situation has been handled to their satisfaction. This helps build positive word of mouth as the customer tells others how you handled the return. Word of mouth is the number one thing that brings new customers to your store, and it’s the stealth marketer’s advertising method of choice. Why? Because a customer testimonial is 10 – 20 times more believable than what you say about yourself. And it’s free. 
   

6. Keep a record of customer complaints, noting also how each complaint was resolved. Review your log regularly to see where your store needs improvement. Create a list of common occurrences to discuss at store meetings, providing examples of how each situation might be addressed. Ask store associates for their input as well. These exercises will provide your associates with a clear understanding of how to handle similar complaints in the future. 

The concern you show customers about what matters to them the most speaks volumes about you, your store, and the people who work there. When you fix a problem, those complaining customers will become your outside sales force, attracting new customers to your store with their positive word of mouth. Why not help them do their job?